A Proprietor Makes a Cash Withdrawal from the Proprietorship

question 32

Multiple Choice

A proprietor makes a cash withdrawal from the proprietorship.How does this affect the accounting equation?

• A) This has no effect on assets, liabilities, or owner's equity.
• B) Assets decrease; owner's equity decreases.
• C) Assets increase; liabilities decrease.
• D) Assets decrease; owner's equity increases.

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